‘Repeal Day’ SG reforms to reduce penalties for late payments
Penalties for employers who err when paying their superannuation contributions (SG) will be less harsh under legislation proposed by the Federal Government.
Assistant Treasurer, Kelly O'Dwyer revealed the proposed reforms as part of the Government's latest ‘repeal day' Bill.
"The current superannuation guarantee charge regime can be very punitive for employers who inadvertently pay their SG contributions late or short-pay by a small amount, which can have a significant impact on small business," she said.
"When the superannuation guarantee regime was introduced in 1992, the very punitive superannuation guarantee charge was considered necessary to ensure employers complied with the new superannuation guarantee regime.
"The Government is committed to employees receiving their superannuation, so that Australians can save for their retirement. However, it is important to right-size the regulatory environment where appropriate."
O'Dwyer said the Government's moves to cut red-tape would deliver annual savings across the board of $4.5 billion, a figure the Shadow Minister for financial services and superannuation, Dr Jim Chalmers, said would come at a cost to consumers.
"From past repeal days, it is worth reminding ourselves that, amidst all the fanfare and all the noise, we have had three sets of omnibus bills that have totalled $56.8 million in deregulatory savings," he said.
"The Government likes to claim… that the decisions they have taken will save $4.5 billion per year. It is worth reminding everyone what this includes. It includes nearly $200 million from stripping away consumer protections as part of the Future of Financial Advice reforms.
"I could go on and on about the farcical nature of these so-called red-tape reductions, but I think you get the point," Chalmers said.
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